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Should I stay or should I go? : A note on employment protection, domestic anchorage, and FDI

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dc.creator Dewit, Gerda
dc.creator Görg, Holger
dc.creator Montagna, Catia
dc.date 2003
dc.date.accessioned 2013-10-16T06:16:21Z
dc.date.available 2013-10-16T06:16:21Z
dc.date.issued 2013-10-16
dc.identifier IZA discussion papers Forschungsinstitut zur Zukunft der Arbeit, Bonn 845
dc.identifier http://hdl.handle.net/10419/3039
dc.identifier ppn:368833836
dc.identifier ppn:368833836
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/3039
dc.description This paper examines how employment protection legislation affects location decisions of multinationals. Based on a simple theoretical framework, we estimate an empirical model, using OECD-data on bilateral FDI-flows and employment protection indices. We find that, while an ?unfavourable? employment protection differential between a domestic and a foreign location is inimical to foreign direct investment (FDI), a high domestic level of employment protection tends to discourage outward FDI. The results are in line with our conjecture that strict employment protection in the firm?s home country makes firms reluctant to relocate abroad and keeps them ?anchored? at home.
dc.language eng
dc.publisher Forschungsinstitut zur Zukunft der Arbeit, Bonn
dc.relation IZA Discussion paper series 845
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D80
dc.subject J80
dc.subject F23
dc.subject ddc:330
dc.subject uncertainty , employment protection , foreign direct investment , domestic anchorage
dc.subject Arbeitsrecht
dc.subject Kündigungsschutz
dc.subject Standortfaktor
dc.subject Direktinvestition
dc.subject Auslandsproduktion
dc.subject Schätzung
dc.subject Theorie
dc.subject OECD-Staaten
dc.title Should I stay or should I go? : A note on employment protection, domestic anchorage, and FDI
dc.type doc-type:workingPaper

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